Retail’s Digital Transformation

1. 1© 2016 SAP SE or an SAP affiliate company. All rights reserved. NRF BIG SHOW 2016 R E TA I L . D I G I TA L . I N F I N I T E O P P O RT U N I T Y. J A N U A R Y 1 7 – 2 0 2 0 1 6 | N E W Y O R K C I T Y

2. 2© 2016 SAP SE or an SAP affiliate company. All rights reserved. NRF BIG SHOW 2016 J A N U A R Y 1 7 – 2 0 2 0 1 6 | N E W Y O R K C I T Y R E TA I L . D I G I TA L . I N F I N I T E O P P O R T U N I T Y.

3. ©2015 SAP SE or an SAP affiliate company. All rights reserved. 3 The World is Digital and Networked Last 2 years 90% Of the world’s data has been generated1 Last 2 years 40% Growth in adoption of business networks2 1 ScienceDaily, May 22, 2013. 2 Technology Adoption Report on Business Networks, Ardent Partners, 2014. 3 Internet of Things (IoT) 2013 to 2020 Market Forecast: Billions of Things, Trillions of Dollars, IDC, 2013. 4 Statista, 2014. 212 billion End of 2020 “Things” will be connected3 By 2020 9 billion Mobile users in the world4 In 2014 51% Of workloads processed in the cloud5 5 Cisco Global Cloud Index: Forecast and Methodology for 2013–2018, Cisco Systems Inc., November 11, 2014.

5. ©2015 SAP SE or an SAP affiliate company. All rights reserved. 5 Retail Omni Commerce Strategic Drivers  Increase conversion rates  Reduce returns  Improve shopping experience  Rapidly implement new marketing initiatives and promotional offer types in all channels  Provide consistent pricing across all channels  Buy, fulfill, return anywhere  Real-time inventory visibility  Flexible use of inventory  Reduce delivery time and cost  Reduce zero picks and cancelled orders  Consolidate customer data  Track all customer interactions  Connect interactions across touch points  Understand preferences, customer profiles Product Data Quality Consistent Pricing 360 View of Customer Reliable Inventory Availability Increase Sales Drive Revenue /Margin Reduce Cost Customer Insight Differentiate Strategic Drivers  Provide contextual, personalized, and consistent experience across channels  Online and in store Personalized experience

6. PROFILE IMPLICIT EXPLICIT RELEVANCE NORMALIZATION ENGAGEMENT LISTENING BROWSE CLICK OPEN CLOSE IGNORE WALK-BY HOVER BUY REGISTER SUBSCRIBE RETURN COMPLETE SEND SHARE EVENTS FROM TRIGGERS TO

7. Merchandising Merchandising Merchandising Supply chain Supply chain Supply chain Stores Customer touch points Marketing Marketing Marketing E-com Mobile Channels  Put customer at the center of decision making  Align business processes (merchandising, marketing, supply chain, …)  Engage customers consistently across all touch points  Product centric  Organizational silos  Scattered and inconsistent data Managing this digital transformation requires a new retail mindset

8. Integrated Marketing & Personalized Promotions NorthAmericanGroceryRetailerCasestudy • TransitioningfromPhysicalto DigitalWorld • PersonalizingOffersand PredictingProfits • MeasuringMarketing& PromotionEffectiveness

9. Brookshires Grocery SAP CAR Powers Loyalty and Promotions Transformation Watch the Sapphire Presentation and hear directly from Brookshire Grocery: http://events.sap.com/sapphirenow/en/sessions.aspx Reinvigorate Customer Experiences with Innovation in the Grocery Business + $600 / year 21% more likely to stay Core Digitally Engaged CORE SHOPPERS + $675 / year 23% more likely to stay Opportunity 156% more likely to move up to Core Digitally Engaged OPPORTUNITY SHOPPERS

16. Hybris marketing and Facebook: Personalized Marketing at Scale Predictive Analytics Scoring Golden Segment and Custom Audience Personalized Offer / Engagement Campaign Analytics Marketing • Extend your “golden” customer segments by finding look-alikes on Facebook • Create highly personalized offers with closed-loop commerce integration • Manage end-to-end budget and campaign planning as part of the broader marketing mix Facebook Ads Campaign Planning Budgeting

Retail’s Digital Transformation

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Retail’s Digital Transformation

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